Bitcoin Cash Use in Commerce has seen a Significant Decrease this year

An analysis and review was made of payments received by the world seventeen largest crypto exchanges and it was seen that Bitcoin Cash (BCH) use in commerce has decreased, according to blockchain analytics firm Chain analysis, It was reported in local news-channel on August 20.

A group of people made analysis from Chain analysis and they found that BCH payments dropped to $3.7 million in May from $10.5 million in March, while the volume of Bitcoin (BTC) payments was to be estimated $60 million in May, was down from a high of $412 million in September. Senior economist, at Kim Grauer Chain analysis, said in a phone interview with a local news- channel saying that, “There are fewer users of Bitcoin Cash and very fewer holders.”

This year, the Bitcoin Cash price decreased by 75 percent, while Bitcoin dropped by about 55 percent. According to Kim Grauer, he sees concentrated ownership as the reason for the low Bitcoin Cash adoption rate, where almost 56% of the cryptocurrency is controlled by 67 wallets that are not located on exchanges. Between 10,000 and 1,00,000 Bitcoin Cash are held by only two wallets. Kim Grauer said that it is possible the wealthiest holders are the ones sending a lot of the traffic to merchant services.

Bitcoin Cash appeared a year ago after a hard fork from the Bitcoin blockchain. During the time of launch of Bitcoin Cash it caused controversy in the community, Bitcoin.com Vice President of business operations, Alejandro de la Torre told the local news-paper about the importance of the fork. He said, “The ability to make forks and besides make sure to keep the community aligned was a great achievement. They provided much greater bandwidth and their by increase it per block by first increasing to 8 MB and then again to 32 MB. This additional room is more than what is needed presently, but Bitcoin Cash is seeing the future and looking ahead and getting ready to process high volumes of traffic. The greater the block size it allows more of Bitcoin Cash to store more information in each transaction, giving the blockchain space to write smart contracts on-chain at low costs.”